The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-10-02
A GREAT WHEAT DEAL.
Story Of the Leases Of the BONANZA
Kings.
Twelve -MiIfi~vs sunk Q. CcrnerisE
the Worries wheat Crop-A Pc
ealiAF Sank and It's Fortunes.
Ban Fransifcs Correspondence Of tho Glsbe-
Dsmscra

since the failure OF the Bank OF
California and the suicide of Rails
ton, twelve years age last month,
no event in tho financial world OF
San Francisco has caused so much
excitement and excited such com
ment as the change in the manage.
ment OF the Nevada Bank and the
revelations Of the enormous losses
sustained by the bank in the recent
wheat deal here and in Chicago.
The bank has lost by its own showing
100000 in hard cash in five
months, aud the best observers of
the market declare that in the nine
months since the deal was begun in
Chicago the losses will foot up $l2.-
100000. What has added to the
sensation is the great secretiveness
Of the heads Of the Nevada Bank.
An air Of mystery has surrounded
all their speculation, and their fire.
quent denials that the bank had
anything to do either with the Chi.
cago or the San Francisco wheat
deal have porplexed the public and
Whetttu curlOslty.
A UNIQUE BANK.
To explain the sensation caused
by the advent OF Senator Fair into
the bank and the retirement Of
Flood, 1t will be necessary TO briefly
rehearse some of the history Of the
bank. The Nevada Bank is proba-
bly, UNDUE among financial institu-
tons in this country. IL never had
more than Eve bona fide stock hold.
ers, and most Of the time since its
incorporation il has had only three.
Ii was started in 1875, in the heyday
Of the prosperity OF the Comstock
mines, when the leading stocks we're
quoted at 500 a share, and every
one iancied that there would be no
limit 10 the stream OF gold and silver
which flowed into San Francisco.
Besides Flood, Mackay and Fair, the
other incorporators were O'Brien,
now dead, and Louis McLane, who
was Tor many years president OF
Wells, Fargo 4 Co.'S Express Com
pany in this city. Everyone inter.
estcd in stocks became a patron OF
the bank, and the deposits soon
reached into the millions. The
capital stock was made $4,000, 600,
but after the collapse Of tho mining
stock excitement, this capital was
reduced 20 5000, 900. the amount
actually paid in. From the outset
James q. Flood was the president.
FLOODS PRIDE IN THE BANK.
Ii was Floods dream from the
time he made his first million 10
found great banking institution of
which he should be the head. IL
seemed 10 him that as a banker he
would cut q larger figure in the |
financial world, and the public would |
be more apt TO forget his rapid eyo.
luton iron corner grog shop keep.
or. He had no bank training, but
he was shrewd aud the bank content
ed ltseli mainly with loans on good
real estate and the handling of the
accounts Of the mining companies
and Of the stockholders. There was
good deal Of money in this, and,
what IL more, Il gave Flood aud his |
partners immense power on the |
stock market. They had ready cash |
with which 10 engineer and deal, and |
u they wanted TO corner any particu.
lar stock and then unload IL on A
credulous public their facilities were
unsurpassed. Flood soon came 10
feel the greatest pride in his bank.
IL represented the colossal fortunes
that bad been made by tho four
lucky Comstock mincrs-Flood. Fair,
hAckay aud q BrieD. When u Brien
died, the other three became sole
owners. They represented the bank
which was the outward aud visible
sign a their great wealth. The
bank had better standing in Lon.
don than Il enjoyed here, because
the Englishmen had not been bitten
In the stock deals which the man.
ayers were constantly getting up
here in San Francisco.
LUCK or THE BONANZA KINGS.
SO every day BONANZA King Flood
could be seen walking up the marble
stcps Of his fine bank. lie arrived
promptly Al go O'Clock: he went
out To lunch 10 the neighboring res.
tAuTaut At | o'clock, aud he seldom
lett the bank until o'clock in the
afternoon. lie had small army of
callers every day, eager to see this
quiet millionaire in bis back Office.
He had hundred schemes, Yearly
all Of which bore directly on the
mines that he aud bis partners knew
% thoroughly. Nearly everything
they touched turned TO gold. Even
the collapse OF the Comstock mines
did not ibiurc them seriously, AZ
they had unloaded the bulk OF the
stock on the public long before the
latter knew that the rich ore wa.
practically exhausted. II they had
confined themselves 10 mining stock
deals, no one would have had 20 re.
cord the enormous losses that they
have recently suffered.
rhE OLD PARTNERS QUARREL.
But 10 an evil hour di,sensions
arose between the partners, aud
Flood aud Mackay were Induced 10
enter the arena a wheat speculation,
ayenturc which has ended Ia a mar.
row escape from financial ruin. In
the spring Of lSSj IL was whispered
on the street that there had been a
falling GU. between the old Com.
stock partners aud that Fair was out
oil the Nevada Bank. This was cor.
roborated later by the transf,r Of all
the bank property by Flood and Fair
70 Msokay. Fair was very bitter over
the matter and claimed that he lad
been hardly used. IL seems Flood
gave him the option OF buying out
both the other partners or Of selling
out with Flood 10 Mackay. Fair
chose the latter course, but he
claimed aiterwaTd that Flood did
not soll out, but resumed bis interest
Certain IL YVES that he continued TO
oil the hrcsidentcy until last week
when he formal y retired from the
place he had held continuously Tor